If an underlying policy, (ie. auto, home, boat or rental dwelling ...) has its limits exhausted by a covered loss, the umbrella will start paying at that point.  

If you want to protect your friend's capital as if it were your own, you'd want to:1) Secure the loan with real estate in the form of a deed of trust or mortgage (depending on the state the property is in)2) Obtain property insurance binder with your lender as an additional insured3) Obtain a lender's title insurance policy protecting them (different than an owner's policy) and transfer all funds through an escrow closer or real estate attorney (depending on the state, the requirements for closing may differ)4) Use a real estate attorney who also practices private lender law in the state the property is located in.

I'm sure they are exhausted and my baby girl is pist.

Kitchen/bath exhaust fans.Don’t buy a $50 exhaust fan for the bath or kitchen.

Without a rental property 99% of us could do our own taxes, maybe in less than an hour.

It also depends on if your itemized tax is higher than standard deduction for you to write off your real estate taxes...Bottom line, talk to your CPA on this since this seems more like a tax question than an asset protection question.

The last location was great, I'll be OK with anything as long as it's not more than an hour and 15 minutes from my house. 

By having the students be the ones to actually make the deal and sign off on the due diligence, we find ourselves in much more of a coaching role rather than an investment firm.

I would also wonder why the property manager who screens the tenants better than an app would have so many evictions that court becomes a normal part of life.I guess in my lucky simplistic mind I don’t see the need for a manager.

There will be significant cost and time involved, hence the alternative, pre-emptive steps outlined.Focus on loss minimization rather than an emotional response.Best of Luck -